As mentioned in the book, External factors
include: Changing consumer needs and
Chapter 6: Managing Change
LEARNING OBJECTIVES
 Describe making the case for
change.
 Compare and contrast views on the
change process.
 Classify areas of organizational
change.
 Explain how to manage change.
 Discuss contemporary issues in
managing change.
 Describe techniques for stimulating
innovation.
 Explain why managing disruptive
innovation is important
Change – an organisational reality
Managing change is an integral part of
every
manager’s job
1. Describe making the case for change
To quote from Albert Einstein, “The
measure of intelligence is the ability to
change.”
Since change is the only constant thing in
this world, we are bound to be open-minded
individuals who are willing to learn,
compromise, and adapt. In the context of
Management, Organizational change
happens when change agents like
managers or even non-manager employees
find an opportunity or a reason to alter
factors that affect the flow in the system
such as people, structure or technology.  sea. Change surfaces as the occasional
No matter how simple or complex the
change that will be made, there will always
be External and Internal factors that need to
be considered in order to implement an
effective change.  be planned and requires unfreezing the
wants, New governmental laws,
Changing technology, and Economic
changes. These factors are beyond the
control of any organization or company but
the importance and effect of these are vital
for the overall performance of the
organization or company in the long run.
On the other hand, Internal factors
include: New organizational strategy,
Change in composition of workforce,
New equipment, and Changing employee
attitudes. Unlike the External factors, these
factors can be implemented through the
managers, most of the time, because it
involves decision-making and strategic
planning to avoid misunderstandings in the
workplace.
2. Compare and contrast views on the
change process
CALM WATERS VERSUS WHITE-WATER
RAPIDS METAPHORS
THE CALM WATERS METAPHOR
The Calm Waters Metaphor envisions the
organization as a large ship crossing a calm
storm disrupts the trip.
(pwede sad insert photo ani)
According to Kurt Lewin's three-step
change process, successful change can
status quo, changing to a new state, and
refreezing to make the change permanent.
Lewin's process treats change as a break in
the organization's equilibrium state.  changing structure includes any alteration in
This metaphor dominated the thinking of
practicing managers and academics.
THE WHITE WATER-RAPIDS METAPHOR
In this metaphor, the organization is seen as
a small raft navigating a raging river with
undisrupted white water-rapids.   during mergers and acquisitions.
(insert pic sad) 
The White Water-Rapids metaphor takes
into consideration that environments are
both uncertain and dynamic. The lack of
environmental stability and predictability
requires that managers and organizations
continually adapt to survive.
This metaphor is consistent with a world
that is increasingly dominated by
information, ideas and knowledge.
3. Classify areas of organizational
change.
AREAS OF CHANGE
Managers face four main areas of change:
strategy, structure, technology, and people
Changing strategy - signifies a change in
how managers ensure the success of the
company. you’ll need to do some serious
planning. You need to identify what the
ultimate goal is and then design a plan to
achieve it. An example of this is changing
your company’s goals or missions
Changing structure - includes any change
in structural variables such as authority
relationships, coordination mechanisms,
employee empowerment, or job redesign.
reporting relationships, coordination
mechanisms, degree of centralisation, job
design or similar structural variables.
Structural changes involve major shifts in
the management hierarchy, team
organization, and the responsibilities
attributed to different departments,
employees, or teams.
Mergers and acquisitions are the most
common cause of structural change.
Eliminating role redundancies, redefining
goals, clearly defining new roles and
responsibilities, and training on technology
are all important parts of managing change
Structural change can also apply to smaller
adjustments, such as creating a new team.
Changing technology encompasses -
modifications in the way work is performed
or the methods and equipment that are
used/ work processes and methods.
Managers can also change the technology
used to convert inputs into outputs.
Changing people - refers to changes in
attitudes, expectations, perceptions, and
behavior of individuals or groups.
Organizational development (OD)
is the term used to describe change
methods that focus on people and the
nature and quality of interpersonal
work relationships.
4. Explain how to manage change.
Change can be a threat to people in an
organization. Organizations can build up
inertia that motivates people to resist
changing their status quo, even though
change might be beneficial.
Why do people resist change, and what
can be done to minimize their
resistance?
- An individual is likely to resist
change because of uncertainty,
habit, concern over personal loss,
and the belief that the change is
not in the organisation’s best
interest.
a. Uncertainty
Change replaces the known with
uncertainty.
b. Habit
Another cause of resistance is that
we do things out of habit. We’re
creatures of habit. We want life to be
easier, hence we go for ways we
already know.
c. Fear of losing something already
possessed.
Change threatens the investment
you’ve already made in the status
quo. They fear the loss of status,
money, authority, friendships,
personal convenience, or other
economic benefits they value
d. Person’s belief that the change is
incompatible with the goals and
interests of the organization.
For instance, an employee who
believes that a proposed new job
procedure will reduce product quality
can be expected to resist the
change.
Techniques for reducing resistance
Depending on the type and source of the
resistance, managers might choose to use
any of these.
- Education and communication
- participation
- Facilitation and support
- Negotiation
- Manipulation and co-optation
- Selecting people who accept change
- Coercion
5. CONTEMPORARY ISSUES IN
MANAGING CHANGE
a. LEADING CHANGE
How can managers make change happen
successfully? They can (1) make the
organization change capable, (2)
understand their own role in the process,
and (3) give individual employees a role
in the change process
Managers need to recognize their own
important role in the process. Managers
can, and do, act as change agents. But their
role in the change process includes more
than being catalysts for change; they must
also be change leaders. When
organizational members resist change, it’s
the manager’s responsibility to lead the
change effort. But even when there’s no
resistance to the change, someone has to
assume leadership. That someone is
managers.
The final aspect of making change happen
successfully revolves around getting all
organizational members involved. Managers
need to encourage employees to be change
agents—to look for those day-to-day
improvements and changes that individuals
and teams can make
b. CREATING A CULTURE FOR CHANGE
The fact that an organization’s culture is
made up of relatively stable and permanent
characteristics tends to make it very
resistant to change. A culture takes a long
time to form, and once established it tends
to become entrenched. Strong cultures are
particularly resistant to change because
employees have become so committed to
them.
How can we make a culture for change?
c. STRESS
- can be the aftermath of organizational
change.
- is the adverse reaction people have to
excessive pressure placed on them from
extraordinary demands, constraints, or
opportunities.
Symptoms of Stress
What causes Stress?
- Task demands
- Role demands (pressures placed on
an employee as a function of the
particular role he or she plays in the
organization)
- Interpersonal demands (pressures
created by other employees)
- Organization structure
- Organizatonal leadership
(represents the supervisory style of
the organization’s company officials)
How can stress be reduced:
- Redesigning jobs
- Employee Assistance Programs
- Wellness programs
6. Techniques for stimulating innovation
CREATIVITY - INNOVATION
Creativity refers to the ability to combine
ideas in a unique way or to make unusual
associations between ideas. 
Innovation - taking creative ideas and
turning them into useful products or work
methods
Innovative organization is characterized
by its ability to generate new ideas that are
implemented into new products, processes,
and procedures designed to be useful—that
is, to channel creativity into useful
outcomes. 
Three variables in stimulating
innovation:
a. STRUCTURAL
 Organic Structure - Because this
structure is low in formalization,
centralization, and work
specialization, it facilitates the
 flexibility and sharing of ideas that
are critical to innovation.
 Abundant Resources - With an
abundance of resources,  managers
can afford to purchase innovations,
can afford the cost of instituting
innovations, and can absorb
failures.  evidence of high performance.
 High Interunit Communication -
Cross-functional teams, task forces,
and other such organizational
designs facilitate interaction across
departmental lines and are widely
used in innovative organizations.
 Minal Time Pressure - Innovative
organizations try to minimize
extreme time pressures on creative
activities despite the demands of
white-water rapids environment. 
 Work and Non-Work Support-
Employee’s creative performance
was enhanced when an
organization’s structure explicitly
supported creativity.  the opportunity to participate in decision
b. CULTURAL
    ACCEPTANCE OF AMBIGUITY - Too
much emphasis on objectivity and specificity
constraints creativity.
    TOLERANCE OF THE IMPRACTICAL -
Individuals who offer impractical, even
foolish, answers to what-if questions are not
restrained. What at first seems impractical
might lead to innovative solutions.
Encourage entrepreneurial thinking.
c. HUMAN RESOURCES
    LOW EXTERNAL CONTROLS - Rules,
regulations, policies, and similar
organizational controls are kept to a
minimum.
    TOLERANCE OF RISKS - Employees
are encouraged to experiment without fear
of consequences should they fail. “Failure,
and how companies deal with failure, is a
very big part of innovation.”
    TOLERANCE OF CONFLICTS -
Diversity of opinions is encouraged.
Harmony and agreement between
individuals or units are not assumed to be
FOCUS ON ENDS - Goals are made clear,
and individuals are encouraged to consider
alternative routes toward meeting the goals.
Focusing on ends suggests that several
right answers might be possible for any
given problem
POSITIVE FEEDBACK - Managers provide
positive feedback, encouragement, and
support so employees feel that their creative
ideas receive attention.
EXHIBIT EMPOWERING
LEADERSHIP - Being an empowering
leader means  letting organizational
members know that the work they do is
significant. Provide organizational members
making. Show them you’re confident they
can achieve high performance levels and
outcomes. Being this type of leader will
have a positive influence on creativity.
HUMAN RESOURCE
1. HIGH COMMITMENT TO
TRAINING AND DEVELOPMENT
2. HIGH JOB SECURITY 
3. CREATIVE PEOPLE 
IDEA CHAMPIONS - Individuals who
actively and enthusiastically supports
new ideas, builds support, overcomes
resistance, and ensures that innovations
are implemented. Idea champions have
jobs that provide considerable decision-
making discretion. This autonomy helps
them introduce and implement innovations
in organizations

7. Explain why managing
innovation is important
conduct business as usual. Companies
need to be able to react to emerging market
trends, disruptions and technologies quickly
and effectively. If they can’t they’ll be left
behind because responding with sustaining
disruptive innovations isn’t enough.

WHO’S VULNERABLE?
DISRUPTIVE INNOVATION
large, established, and highly
“Disruptive innovation exists when a profitable organizations.
smaller company with fewer resources is
able to successfully challenge  Why? Because they have
established incumbent businesses. the most to lose and are most
Disruptive innovation presents an asset vested in their current markets
to organizations that recognize the and technologies.
market potential of the technology”
Which businesses or occupations
DISRUPTIVE INNOVATION - describes currently struggle with disruptive
innovations in products, services or innovation?
processes that radically change an
industry’s rules of the game camera manufacturers
(smartphones) and travel agents
It’s important to distinguish disruptive (to online travel services).
innovation from sustaining innovation. 
SUSTAINING INNOVATION - Small and Which others may be vulnerable
incremental changes in established in the near future?
products rather than dramatic
breakthroughs.   truck drivers (self driving
vehicles), model builders (3-D
high-definition television, back-up printers), and pipeline workers
cameras on cars or fingerprint and oil drillers (renewable
technology on energy). 
Smartphones (SUSTAINING
INNOVATION) 
They represent small and incremental
changes in established products rather than
dramatic breakthroughs.

WHY DISRUPTIVE INNOVATION IS

IMPORTANT?

---it can benefit markets in emerging

countries by helping them develop
creative solutions that make products
that can be challenging to acquire or use
more accessible to the public.---

Companies can become a victim of

disruptive innovation when they choose to